The South African motor industry incorporates the manufacture, distribution, servicing and maintenance of motor vehicles and plays a vital role in South Africa’s economy, contributing during 2001 about 5,7% of the country’s R975.1 billion Gross Domestic Product.
(2000: R887.8 billion).
The South African motor industry has developed considerably during the past 50 years and has evolved from initially an importing industry into an increasingly self-sufficient industry of vehicle manufacture, distribution, servicing and maintenance. Salient data on the industry may be
shown as follows -
- Exports of South African produced motor cars have grown from 8,976
vehicles exported in 1995 to 97 307 units exported in 2001, whilst exports of commercial vehicles grew from 6,788 vehicles in 1995 to 10,694 vehicles by 2001.
- In terms of the trade which supports this industry, there are approximately 5,500 garages and filling stations (with the majority having service workshops as well) plus a further 3,300 specialist repairers; 1,100 new car dealerships holding specific franchises; an estimated 850 used vehicle outlets; about 220 motor vehicle component manufacturers, together with about 150 others supplying the industry on a non-exclusive basis; 450 specialist tyre dealers and retreaders; 500 engine reconditioners; 80 vehicle body builders; 650 parts dealers and
around 280 farm vehicle and equipment suppliers.
- Capital investment by motor manufacturers in South Africa is in excess of R12.5 billion. Investment in plant and equipment by the
component supplier industry is estimated to be of the order of R6.5 billion
- Investment by the motor trade is substantial. Total capital investment by the supportive trade is estimated to be in the order of R7.5 billion. Investment in the fuel refining and distribution industry
amounts to about R15.5 billion
- Revenue generated by the South African motor trade (excluding fuel sales) during 2001 was in excess of R94 billion compared to R81 billion during 2000 of which the annual value of sales of new motor cars and new commercial vehicles amounted to R39.0 billion. Total revenue for the industry
is expected to rise to R110 billion in 2002.
- Aggregate employment in the automobile manufacturing industry currently amounts to about 33,000 persons whilst employment in the component manufacturing industry is of the order of 60,000 employees. Total employment in the trade area, namely in the vehicle sales and vehicle maintenance and servicing field, currently amounts to about 180,000 persons. Employment in the tyre manufacturing industry is of the
order of 8,500 persons.
In economic terms, the industry’s gearing effect in creating work opportunities can be traced to many kinds of basic manufacturing activities, including steel production, paint and rubber, textiles, plastics, petro-chemical industries and component fabrication. Also, because
the industry provides employment by proxy in many other areas (civil servants in licensing departments; Customs and Excise personnel; tax officials; staff in local authorities which provide supportive services to the industry), the influence that the industry has on a large proportion of gainfully employed South Africans is considerable. The South African government plans to implement a long-term strategy that will see the industry develop significantly by 2020.
